US Senator Cynthia Lummis has pushed back against criticism that the Digital Asset Market Clarity Act leaves decentralized finance innovators exposed to legal liability. Speaking on Friday, she argued that recent bipartisan revisions to the bill make it the strongest protection for DeFi developers ever enacted. Her remarks were a direct response to concerns raised by prominent crypto attorney Jake Chervinsky. Lummis urged supporters not to believe what she called fear, uncertainty, and doubt surrounding the legislation.
Chervinsky had argued that Title 3 of the current draft undermines the Blockchain Regulatory Certainty Act, a separate bill focused on shielding developers from regulatory overreach. His central concern is that the money transmitter definitions within Title 3 could still expose non-custodial software developers to know-your-customer obligations. He contends this amounts to misclassifying such developers as money transmitters, which would subject them to Bank Secrecy Act requirements they were never intended to face.
The CLARITY Act does incorporate the BRCA in section 604, which states that non-controlling developers and providers of non-custodial software are not to be treated as financial institutions. However, Chervinsky maintains that this provision does not go far enough given the broader language in Title 3. He also noted that debate over stablecoin rewards provisions in the bill has drawn attention away from these DeFi-specific protections. Lummis acknowledged that passing the CLARITY Act is necessary for the BRCA’s developer protections to take legal effect.
The senator confirmed that changes have been made to Title 3 through bipartisan negotiations over recent weeks, though the updated draft has not yet been released to the public. She stated that the revisions are designed to address the concerns raised about developer liability. Her comments suggest lawmakers are aware of the tension between the bill’s various provisions and are working to resolve them before a formal committee vote.
Chervinsky’s concerns are set against a backdrop of high-profile legal cases targeting crypto developers in the United States. Roman Storm, co-founder of Tornado Cash, was convicted in August 2025 of conspiracy to operate an unlicensed money transmitting business. That case, along with others, has heightened anxiety among DeFi builders about their potential exposure under existing financial laws. Chervinsky cited these prosecutions as evidence that clearer statutory protections are urgently needed.
US lawmakers have indicated the CLARITY Act is advancing toward a Senate Banking Committee markup expected in April, following recent bipartisan progress on stablecoin-related provisions. Lummis framed passage of the bill as essential to securing the legal certainty that DeFi developers currently lack. The outcome of the markup process is expected to determine whether the developer protection language survives in its current or revised form.
Originally reported by CoinTelegraph.
